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The Bank of Maharashtra was incorporated in 1938 in Pune, Maharashtra. It currently operates pan-India, and services its more than 15 million customers through various branches and outlets numbering more than 1,900 in total. It is a public sector bank with more than 81% shares being held by the Government of India.
Bank of Maharashtra offers flexible tenure FDs to customers looking to earn optimal returns on their savings while maintaining liquidity as per their requirements. Under these fixed income products, depositors can park their savings with BoM for a pre-determined period and at a preset rate of interest. These schemes are a sound option for investors who prioritise safety of finances or require a steady income stream to meet financial needs.
Eligibility varies from product to product as described in the section below.
Term Deposit Scheme: This scheme is applicable for individuals or Hindu Joint Families (HUF) for tenures between 5 years and 10 years. Minimum deposit amount is ₹ 100, while an account holder can deposit a maximum of ₹ 1 lakh per year.
Monthly/Quarterly Interest Deposit Scheme: This scheme is available for individuals, minors, corporates, firms, clubs, and joint depositors. Minimum amount to open this type of FD account is ₹ 1,000, and customers can opt for tenures ranging from 12 months to 120 months. Customers may opt to get the interest credited in an account of their choice such as RD, CA, and SB etc.
Cumulative Deposit Scheme: This scheme gives high returns as the applicable interest rates are compounded quarterly. The account may be opened individually or by firms, groups, or clubs. Minimum deposit amount is ₹ 100, and tenures range from 6 months to 120 months.
Sheetal Jama Yojana: This scheme combines the best of current accounts and short term deposit schemes. It is applicable for individuals, groups, firms, corporates, PSUs, and trusts etc. The tenures range from 15 days to 5 years. Withdrawals may be made in multiples of ₹ 1,000 using special slips provided by the bank.
Mixie Deposit Scheme: Individuals, jointly or individually, can opt for this scheme. Tenures range from 2 years to 10 years (multiples of 3 months) and deposit amounts start from ₹ 10,000. By combining 2 or more Mixie accounts, customers can receive overdraft facility also. The interest rate charged here is 2% above the actual deposit rates.
Trust Deposit Scheme: This scheme is applicable for public trusts. Apart from interest, customers stand to receive 50% and 25% concessions on collections charges and commission of MT/DD/Pos etc. respectively.
Maha Labh Scheme: This scheme is provided for fixed tenures of 666 days, and deposits below ₹ 1 crore. The interest rate is 8.77% (compounded annually) translating to about 9.41% simple interest rate at the time of maturity. Deposits here are accepted only for products under NRO/Domestic/NRE Cumulative Deposit schemes. Interest is paid at maturity.
Double Deposit Scheme: With this scheme, customers can expect their deposits to get doubled in amount in 97 months (8.75% interest rate compounded quarterly). Senior citizens can have their deposits doubled in 87 months only. This scheme is applicable for deposits under Cumulative Deposits, and value less than ₹ 1 crore. Premature withdrawals are allowed at 1% less interest rate than the applicable rates.
Apart from these FD schemes, BOM also provides recurring deposit (RD) products under Recurring Deposit Scheme, Maha Millionaire Scheme, Maha Lakhpati Scheme, Maha Sanchay Flexible Instalment Scheme, MahaSaraswati Scheme, and FCNR accounts.
The minimum amounts required to open the various FD schemes at Bank of Maharashtra have been listed out in the section ‘Different Fixed Deposit Schemes’ above.
The maximum amount that may be invested in fixed deposits at Bank of Maharashtra is ₹ 5 crores. All deposits above ₹ 5 crores can be made after due permissions have been taken from the nearest Bank of Maharashtra branch or zonal office.
Tenures of the various fixed deposit products from this bank range from 7 days (minimum/short term) up to 10 years (maximum/long term).
Customers can choose to apply for fixed deposit accounts by contacting the nearest branch/office of the Bank of Maharashtra. They should carry all the relevant documents as requested by the bank. Currently, BOM does not provide online registration facilities for fixed deposits, though you can use online portals like BankBazaar to get a more holistic view about the products, and apply for FDs through their website.
For amounts below ₹ 1 crore, the interest rates offered ranges from 6% p.a. to 8.75% for deposits held between 7 days to 10 years. For amounts above ₹ 1 crore and up to ₹ 5 crores, rates vary between 6.50% p.a. and 8.00% p.a.
Customers have to pay TDS on interest earned on fixed deposits held at Bank of Maharashtra. Such taxes are divided into two categories – customers who have submitted PAN details, and those who haven’t. People having submitted their PAN details will have to pay 10% TDS, while those who haven’t provided PAN details have to pay 20% TDS. Taxes are applicable on interest accumulated in a year and amounting to more than ₹ 10,000.
Customers of the ‘Cumulative Deposit Scheme’ are exempt from paying TDS on interests if they have duly submitted forms 15H/15G.
The primary features of BOM fixed deposit schemes are:
Availing loans is possible in under some fixed deposit schemes of BOM.
The Bank of Maharashtra offers an additional 0.50% p.a. for deposits under ₹ 1 crore and maturity slabs of more than 91 days for Indian senior citizens. This additional rate isn’t applicable for deposits made by non-residents of India.
Yes, premature withdrawal is allowed for Bank of Maharashtra fixed deposits. For domestic/NRO deposits, in case of premature withdrawal the rate of interest will be applicable as per the term of the deposit with the bank instead of the rate quoted in the deposit contract. For domestic term deposits with maturity less than 1 year, no penal interest rate will be applicable on premature withdrawal. For all other maturities, 1% penal rate will be applicable.
For NRE accounts, no interests will be payable if deposit is withdrawn within 1 year. Above that, a penal rate of 1% will be applied.
Yes, NRIs can open a term deposit account with Bank of Maharashtra under NRO (non-resident ordinary), NRE (non-resident external) and FCNR (foreign currency non-resident) accounts.
NRO: To be maintained in Indian Rupees. The account can be opened jointly with a resident or non-resident Indian. The interest rates applicable here are the same as domestic term deposit rates. Income tax is levied as per TDS (tax deducted at source). Funds are not fully repatriable except in some special cases.
NRE: To be maintained in Indian Rupees. The account can be opened jointly only with another non resident Indian. The interests earned here are totally tax free. Balances are also exempt from wealth tax. Funds are fully repatriable.
FCNR: These are term deposit accounts with minimum 1 year maturities. The deposits can be made in a major currencies such as USD, GBP, EUR, JPY etc. Joint accounts can be opened with another NRI. Funds are fully repatriable. Interests earned in this account are fully exempt from income tax payments. Balances held are exempt from wealth tax.